Software company MicroStrategy announced the purchase of another 6,067 Bitcoin For $167 million as of the end of Q2 2023 – bringing its total holdings to 158,400 bitcoins at a total cost of $4.69 billion, or $29,586 per coin.
The company, one of the most aggressive corporate buyers of bitcoin, said it acquired its additional coins at an average price of $27,531.
According to MicroStrategy Chairman Michael Saylor, this includes acquiring an additional 155 Bitcoin for $5.3 million in October.
“Our commitment to acquiring and holding Bitcoin remains strong, especially against the backdrop of the prospect of increased institutional adoption,” Andrew Kang, chief financial officer of MicroStrategy, said in a statement.
MicroStrategy's Bitcoin buys hit a record high of $35,878 late Wednesday night amid a rally in the cryptocurrency market, CoinGecko reported.
The leading cryptocurrency was changing hands at $35,332 at press time, up 2.6% over the past 24 hours, and up 72.5% year-to-date.
Microstrategy's net loss is widening
In its third-quarter earnings report, MicroStrategy reported a 3.3 percent increase in revenue to $130 million. However, the company recorded a loss of $143.4 million.
The company recognized a loss of $125.8 million on its Bitcoin reserves during the quarter as the leading cryptocurrency's market value was lower than its carrying value on September 30, 2023.
“An income tax provision of $109.6 million and $24.0 million for the third quarter of 2023 and 2022, respectively, was reflected in net loss, primarily reflecting changes in the valuation allowance on the Company's deferred tax assets related to impairments on Bitcoin holdings,” the company said.
MicroStrategy was first purchased in August 2020 and currently holds approximately 0.75% of Bitcoin's circulating supply, according to Bitcoin Treasuries.
Shares of MicroStrategy were trading at $426 at the closing bell on Wednesday, up 29% from last month.
Edited by Stephen's Grave.
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